Brussels, 08/05/2012 (Agence Europe) - The European Commission is preparing its counter to Argentinean protectionism. In addition to a complaint lodged with the WTO against import restrictions put in place by Buenos Aires, the EU could review the trade preferences granted to Argentina, in response to the Repsol expropriation.
Moves such as the expropriation of foreign companies in Argentina and Bolivia and the trade restrictive policy being conducted by Argentina through its extended import licence regime are a “problem” for these two countries “which will find it harder to secure the international investment they need”. “They are also a problem for the European Union, as our companies are directly affected. That is why we will soon be moving forward with a response to Argentina's action in the Repsol case, in particular”, said De Gucht at a conference on EU-Brazil relations in Brussels on Monday 7 May.
The Commission is considering lodging a complaint with the WTO in the coming weeks over the import restriction measures adopted by Argentina, which, since 2008, has significantly lengthened its list of products that require an import licence. It will also react to the expropriation of Spanish oil company Repsol's Argentinean subsidiary YPF, a move proposed by President Cristina Kirchner in mid-April and approved by the Argentinean Congress last week. The EU could retaliate by suspending the trade preferences granted to Argentina through the EU generalised system of preferences (GSP), Spain's preferred option.
In a letter sent on 19 April to Argentinean Trade Minister Hector Timerman, Commissioner De Gucht criticised the raft of trade restrictive measures introduced by Buenos Aires, to which the expropriation of Repsol can now be added, warning that the EU did not rule out any bilateral or multilateral option for resolving this issue. (EH/transl.rt)